Logistical drivers in a supply chain include facilities, inventory, and transportation, while cross-functional drivers include information, sourcing, and pricing. Facilities store and process inventory, while transportation moves it. Information analyzes inventory, transportation, and facilities, while sourcing determines internal or outsourced functions. Pricing determines the price of goods and services.
Supply chain management aims to maximize the overall value generated by the supply chain, which is the difference between the final product’s worth to the customer and the costs incurred in fulfilling their request. This value is strongly correlated with supply chain profitability, which measures total profit shared across all stages.